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President Cyril Ramaphosa told fellow heads of state and dignitaries from around the world last Wednesday afternoon that African states and other developing economies would need their debt obligations suspended if they hoped to fight the impact of the coronavirus pandemic and revive their economies.
Speaking during a virtual round-table discussion hosted by the United Nations on Financing for development in the era of Covid-19 and beyond, Ramaphosa said African states especially needed a fair and equitable regime to allow room for leaders to address the health and economic crisis.
The G20 has been discussing the possibility of a “debt standstill” for vulnerable economies since April, as each country grapples with the Covid-19 novel coronavirus. According to the World Bank, some creditors are committing to honour the proposal to put a hold on debt obligations.
In April, chief economist for the Africa region at the World Bank, Albert Zeufack, said a “debt freeze” for African economies could free up $44 billion to respond to Covid-19. — fin24.com.
Online Reporter